Understanding the impact of regression and correlation analysis in enhancing decision making

Decision making is all about selecting a course of action among various courses of action. In the past, managers adopts qualitative approach in decision making, but nowadays, quantitative approach in decision making is in vogue because decision making is critical for the progress of every business and regression and correlation analysis are among such quantitative approaches. This work therefore is aimed at understanding the impact of regression and correlation analysis in enhancing decision making in an organization, it equally investigates how regression and correlation analysis could be used to observe, note, form and measure what is happening in an organization in a systematic way and using such result to take decision for the progress of the organization. The data for the study were obtained from intensive/unstructured interviews. While the secondary data were from journal articles, Textbooks and chiefly internet materials. The study revealed that the conduct of regression and correlation analysis help business to investigate the determinants of key variables such as her sales. Equally, regression and correlation help managers and business owners forecast future conditions, lend quantitative support to managers judgement, point out flaws in management thinking and provide new insights that can help company decision makers move their business towards a more profitable future and equally, provides solutions when there is movement of one variable caused by changes in one phenomenon or variation. The study concludes that taking decsison based on intuition may be harmful and detrimental to the progress of an organization. therefore, decision making should be based on scientific approach. Based on our findings, we recommend that every business organizations, especially those in the beverage industries should intensify efforts in adopting regression and correlation analysis, not only it will enhance the company.s decision making process, but following its forecating and budgetary processes will improve the company.s profitability through increased sales and improvement of performance interms of shareholders wealth.